I. Executive Summary
[Company Name], located at [insert location here] is a new, small Bed and Breakfast focused on providing rooms with a clean and modern character that is attractive to leisure visitors to the area. The Company’s rooms will feature modern furniture, high-end technology and modern accessories.
[Company Name]will offer all of the standard Bed and Breakfast services including daily room cleaning, free local calls, cable TV, a free wireless network and various other amenities. Additionally, the Bed and Breakfast will include a restaurant lounge serving breakfast, lunch and dinner, as well as Afternoon Tea and Cocktails.
[Company Name]will primarily serve leisure travelers who seek comfort, necessary amenities, and simplicity of services. In general, the market for the bed and breakfast segment tends to be relatively affluent and well educated.
- The single largest segment which uses bed and breakfasts are guests on vacations/pleasure trips. These tend to be short, weekend breaks to relieve work-related stress. Special events, such as weddings, are important revenue drivers.
- Group travel and business meetings/seminars are important revenue drivers during weekdays and increasingly access points at a central point or in rooms, to attract this latter market.
- 150,000 visitors to the area in according to Madison Office of Tourism
- 55% between ages of 40 and 49, 16% 18 to 29, 18% 50-59, 10% 60+according to National Household Survey of Travel
- Average household income of $85,900 according to the American Bed and Breakfast Association
[Company Name]is led by [Founder’s Name] who has been in the Bed and Breakfast industry for 20 years. While [Founder] has never developed a Bed and Breakfast from the ground up, he has worked in Bed and Breakfast industry most recently as a general manager,and has held various different positions in the management chain over the last 20 years. As such [Founder] has an in-depth knowledge of the Bed and Breakfast business including the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.).
[Company Name] is uniquely qualified to succeed due to the following reasons:
- There is currently no Bed and Breakfast in the community we are entering. In addition, we have surveyed the area and determined that they have frequent visitors who would use our Bed and Breakfast location when launched.
- Our location is central to the downtown, airport, tourist attractions and corporate district of the city.
- The management team has a track record of success in the Bed and Breakfast industry.
- The city announced plans to invest over $1 billion in tourist attractions over the next two years and existing hotels will not be able to handle the increased capacity of visitors traveling to the city.
[Company Name] is currently seeking $3,000,000 to launch.Specifically, these funds will be used as follows:
- Bed and Breakfast design/build: $2,500,000
- Working capital: $500,000 to pay for marketing, salaries, and land costs until [Company Name] reaches break-even.
Topline projections over the next five years are as follows:
|Year 1||Year 2||Year 3||Year 4||Year 5|
|Income Tax Expense||$23,469||$263,663||$366,043||$448,092||$538,375|